Markets Update: Surge in first quarter profit from property sector leads to buying on the Dubai Financial Market and Abu Dhabi Securities Exchange.
Property the hot stock in UAE as profits build
Investors bought up property stocks on Sunday, after first quarter profit exceeded expectations.
Emaar Properties rose 0.6 per cent to Dh3.27, after the Dubai-developer said quarterly net income reached Dh606 million, a 44 per cent rise from the year earlier period. Analysts expected Emaar to report a profit of Dh566 million.
"Emaar's diversification strategy, in terms of revenues, makes it among the most resilient real estate plays in the market," said Marwan Shurrab, the chief trader at Gulfmena Investments in Dubai. "Despite the fact that markets are taking time to turn around, Emaar continues to outperform because of its recurring income."
Dubai's benchmark, the DFM General Index, slipped 0.2 per cent to 1647.68 points.
"The market has lost some steam, as it is mostly retail driven today," Shurrab said.
Sorouh Real Estate rose 1.7 per cent to Dh1.15, after the Abu Dhabi-based developer announced a quarterly profit of Dh83.6 million, up 30 per cent from the year earlier period. Analysts expected Sorouh to report a profit of Dh80 million. The ADX General Index rose 0.3 per cent to 2517.16 points.
Elsewhere in the region, Kuwait's measure was little changed at 6341.90 points. Bahrain's measure added 0.1 per cent to 1146.90 points. Oman's MSM 30 Index added 0.5 per cent to 5872.04 points. Qatar's QE Index was little changed at 8668.09 points.
The Saudi Tadawul All-Share Index was down 0.1 per cent to 7593.01 points.